USDJPY analysis 26.08.2020

The Japanese Yen rose marginally against most of the major currencies, following the release of positive economic data, coinciding with pressure on the US currency.

And government data revealed that the price index of services producers in Japan rose by 1.2% last month, compared to expectations of a rise of 0.8%.

Tomorrow, Federal Reserve Chairman Jerome Powell will make important statements on the sidelines of the Jackson Hole meeting.

Trade tensions between America and China had subsided after the announcement of bilateral consultations over the phone between officials of the two countries to focus on trade relations and abide by the provisions of the first phase of the trade agreement.

Japan is suffering from the possibility of a second wave of the Coronavirus, in light of the high number of cases of the disease in some areas and talk about the possibility of imposing some restrictions and closures.

In terms of trading, the US dollar fell against the Japanese yen by 07:53 GMT by 0.1% to 106.3, and reached the highest level at 106.5, while the lowest price was recorded at 106.3.

Technical analysis

The dollar versus yen pair traded in a positive note yesterday, attacking the 106.44 level and trying to stabilize above it, but we notice that the price closed the daily candle below this level, and is moving below the resistance line that appears on the image, in conjunction with the clear negative signs appearing on the stochastic indicator.

Thus, these factors encourage us to favor the bearish bias in the upcoming sessions, noting that the next main target is at 105.20, while breaching 106.55 represents the key to the negative scenario halting and the shift to the upside in the intraday term heading towards 107.68 as a next positive target.

The expected trading range for today is between 105.60 support and 107.00 resistance

The expected general trend for today: Bearish